Impending South American Bushels

Steve Bruce General Commentary Leave a Comment

                                You have to feed a bull every day and we just didn’t do it today! Despite the weather being “not perfect” in South America we’re still another day closer to a huge crop hitting the market…….On top of that we’ve a lot of beans and corn to move out of temporary storage in the next 6 to 8 weeks…………..Spreads and flat price on beans and corn need some extraordinary interstellar demand to show up to generate the incentive for end users to step up their buying program………………It appears that beans and corn are still a buyer’s market……………………Wheat still appears to have the most solid fundamentals and could be the most likely grain to generate and sustain a rally but, it’ll need corn and beans to stabilize……….Wheat spreads are still very likely to remain firm as the Argentina crop is losing quality and this just continues the same story out of the Black Sea……………Incentive to buy might start happening when the US crops starts breaking dormancy in March………..We’ve abundant moisture and the fewer planted acres might be starting off in solid shape but the situation in last half March through July is what matters………………..The running average of H/K in Chicago is 23% and KC 44% which suggests that storage rates could become cheaper in late February………………President Trump may not be attending the Davos  World Summit on January 22 to 25 if the stalemate on the shutdown/shakedown continues which might be a negative as traders might have been looking at that forum as a possible location to announce an agreement…………………       

 The information contained on this site is the opinion of the writer and obtained from sources cited

within the commentary. The impact on market prices due to seasonal or market cycles and current news events may already be reflected in current market prices.     

Join My Mailing List

Steve Bruce

Walsh Trading
312 985 0156
888 391 7894 toll free
312 256 0109 fax

Walsh Trading
53 W Jackson Suite 750
Chicago, Il 60604

Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
Futures and options trading involves substantial risk and is not suitable for all investors. Therefore, individuals should carefully consider their financial condition in deciding whether to trade. Option traders should be aware that the exercise of a long option will result in a futures position. The valuation of futures and options may fluctuate, and as a result, clients may lose more than their original investment. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.
All information, communications, publications, and reports, including this specific material, used and distributed by Walsh Trading, Inc. (“WTI”) shall be construed as a solicitation for entering into a derivatives transaction. WTI does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.

Leave a Reply

Your email address will not be published. Required fields are marked *